According to @iampaulgrewal, a New York judge has rejected a joint settlement proposal from Ripple Labs and the SEC that would have reduced Ripple's penalty to $50 million. District Judge Analisa Torres stated the primary issue was the request to remove a permanent injunction, as the court previously found a 'reasonable probability' that Ripple would continue violating federal securities laws. The ruling notes that despite a more crypto-friendly SEC leadership, the parties failed to demonstrate 'exceptional circumstances' to warrant modifying the final judgment. Judge Torres suggested Ripple could either withdraw its appeal or proceed with it to end the litigation. This legal development occurs as XRP trades around $2.29, with a slight positive 24-hour change, while the resolution of the case remains critical for removing lingering legal uncertainty for the token.